A court in São Paulo, Brazil, has ordered Circle to freeze USDC involved in a cryptocurrency fraud case amounting to approximately $13,000. This marks the first instance in Brazil where the judiciary has directly instructed a stablecoin issuer to freeze USDC. The case involves a victim who transferred funds in an "AI high-yield investment" scam. Authorities tracked the USDC through blockchain technology and determined that Circle has the technical capability to freeze specific tokens as per judicial orders. The court emphasized that this is a temporary and reversible protective measure, not punitive in nature.